City leads repeat home prices

Calgary posted the highest monthly price growth in Canada for repeat home sales in March, according to a new national survey.
The Teranet-National Bank house price index, released Wednesday, said Calgary prices rose 1.3 per cent over February following three months of decline totalling 2.2 per cent. On a yearly basis, prices in Calgary were up 5.7 per cent.
“The number of available homes for prospective buyers has declined in the market and this has helped put more pressure on prices,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp.

The index is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index.
The March monthly increase across the country ended a run of six straight monthly declines totalling 1.8 per cent. Prices were up from the month before in nine of the 11 markets.
In Edmonton, prices rose one per cent after four months of decline totalling 2.0 per cent.
Monthly prices declined in Hamilton (0.9 per cent) and Victoria (3.2 per cent), the survey stated.
For Victoria it was the largest monthly decline in the entire period of almost 23 years over which the Teranet-National Bank index has been calculated for that city.
“We expect that, as existing home sales trend lower in the upcoming months, this house price inflation will eventually turn into deflation,” said Amna Asaf, economist with Capital Economics.
“We are now entering that time of the year when prices are more likely to fall than rise.”
Asaf said Calgary and Edmonton are providing upward pressure on prices, “perhaps because the worst of their housing market correction is behind them.”
 
mtoneguzzi@calgaryherald.com – Calgary Herald
Published: Thursday, April 18, 2013